Thin Gage Open Loop System Cards and Method of Manufacture

ABSTRACT

An improved card design and manufacturing method to produce thin gage, open loop system cards, such as credit cards, debit cards, prepaid cards, financial cards, and payroll cards. The thin gage card structure may vary between 5-15 mils in thickness (0.005″ inches to 0.015″ inches) on a one ply plastic material such as PVC or polyester. The majority of manufacturing steps can be performed on a rotary press in a single operation. Card personalization will be accomplished on a high-speed machine using ink jet for all variable information imaged on both the front and back, and accompanied by high speed encoding of magnetic stripe or activation of integrated circuit elements utilized in the electronic payment process.

CROSS-REFERENCE TO RELATED APPLICATIONS

This is a continuation of U.S. patent application Ser. No. 13/017,650,filed Jan. 31, 2011, which is a nonprovisional of U.S. ProvisionalPatent Application Ser. No. 61/417,002, filed on Nov. 24, 2010, both ofwhich of are hereby incorporated herein by reference.

Priority of U.S. patent application Ser. No. 13/017,650, filed Jan. 31,2011 and U.S. Provisional Patent Application Ser. No. 61/417,002, filedNov. 24, 2010, both of which are incorporated herein by reference, ishereby claimed.

International Application Serial No. PCT/US11/60175, filed on Nov. 10,2011 (published as No. WO2012/071182 on May 31, 2012) is herebyincorporated herein by reference.

STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT

Not applicable

REFERENCE TO A “MICROFICHE APPENDIX”

Not applicable

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates to credit cards, debit cards, prepaidcards, financial cards, reward cards, payroll cards, and other cardsused in an “open loop” system. An open loop card has the uniquecharacteristics in that it can be used anywhere that an electronicpayment network is used (Visa, MasterCard, American Express, Discover,etc). The account value is normally not physically stored on the card;instead, the card number uniquely identifies a record in a centraldatabase, where the account balance is maintained; therefore, the cardmust contain a card number for central database identification. Cardsmay contain a users name (such as a credit card), or may not contain aname (such as a prepaid or open loop gift card) and therefore beanonymous as to user identification.

For the purpose of this invention, the term “credit card” will be usedfor all “open loop” system cards.

2. General Background

The following U.S. patents are incorporated herein by reference:

TABLE Pat. No. TITLE ISSUE DATE 3,790,754 Security Access Medium Feb.05, 1974 4,573,711 Secure Credit Card and Method of Mar. 04, 1986Manufacturing Same 4,973,515 Magnetic Card Nov. 27, 1990 6,592,035Method and Apparatus for Rapid, Jul. 15, 2003 Serial Transaction ItemFabrication 6,644,551 Card Nov. 11, 2003 6,817,530 Multiple ImageSecurity Features Nov. 16, 2004 for Identification Documents and Methodsof Making Same 7,341,198 IC Card and a Method of Mar. 11, 2008Manufacturing Same 2004/0004131 High Temperature Tag Having Jan. 08,2004 Enclosed Transceiver 2006/0080198 Cash Transaction System Apr. 13,2006 2007/0125866 IC Card and a Method of Jun. 07, 2007 ManufacturingSame 2009/0019751 Removably Attachable Card and Jan. 22, 2009 CardRetaining Device

In contrast to the open loop concept, a “closed loop” system restrictscard usage to a single merchant or merchant group (restaurant, retailstore, etc). The card typically contains a card number for point-of-saleactivation and card inventory control. A central database is used forpoint-of-sale activation, processing of subsequent card basedtransactions, and maintenance of the associated account value. The carduser is usually not identified.

In today's gift card market, both open loop and closed loop gift cardsare common. The gift card market started primarily as a closed loopsystem, but open loop cards are evolving as a preferred choice since thegift recipient can use the card at an unlimited number of merchants.

Credit cards were introduced in the mid 1960's, and by 1977 Visa becamethe first credit card to be recognized worldwide and have the followingfeatures:

-   -   Physical Attributes        -   a. 30 mil multilayer PVC        -   b. Account #        -   c. Signature Panel        -   d. Magnetic Stripe    -   2. Account charges recorded using a specialized credit card        imprinter        -   a. Used embossed credit card to get customer information            (Name, Account No., Expiration Date, etc.)        -   b. Embossed metal merchant plate set in imprinter        -   c. Adjustable data wheels to give date and transaction            amount        -   d. Multi-part form set to obtain physical copies (customer,            merchant, credit card company)        -   e. Roller carriage mechanically pulled over the form set            (imprinting data/transaction amount, merchant information            and credit card information    -   3. 30 mil card construction        -   a. Necessitated by credit card imprinter        -   b. Mechanical pressure of rollers going over card flatten            embossing on thinner cards    -   4. 30 mil construction legacy        -   a. Brand image, bulk (thickness and raised lettering)            creates perceived customer value (vs. non-embossed or thin            card)        -   b. No longer required since card transactions are processed            electronically using the magnetic stripe or embedded            microchip.        -   c. Electronic verification of most cards, especially those            for debit and prepaid accounts.        -   d. Print transaction receipt on separate inexpensive printer

Disadvantages of 30 mil Credit Cards Versus a Thin Gage (5-15 mil)Credit Card

-   -   1. Thickness/Bulk: Thicker wallet and packages.        -   a. 30 mil card—no embossing (variable information printed            using thermal transfer ribbon or inkjet)            -   i. 10 mil (3 times thicker)            -   ii. 7 mil (4.3 times thicker)        -   b. 30 mil card with embossing: 50 mil thickness            -   1. 10 mil: 5 times thicker            -   2. 7 mil: 7 times thicker. Thicker wallet and packages.    -   2. Weight        -   a. Added mailing costs        -   b. Heavier wallet/purse    -   3. Embossing        -   a. Increases caliper 65-100%        -   b. Shortens card life by compromising material integrity            during embossing process where stock is mechanically            stretched to create the relief of the embossed characters.    -   4. Increased cost per card        -   a. Multiple ply lamination versus single ply        -   b. More material by weight        -   c. Increased number of manufacturing steps        -   d. Requires a multiple step sheet printing and laminating            process versus thin gage cards printed and die cut on a            rotary press process (rotary presses typically cannot print            material over 15 mils thick as thicker material is too stiff            to go around rollers on a rotary press versus a relatively            straight path on a sheet fed press).

Disadvantages of Thin Gage Cards

-   -   1. Customer perception that thinner card is less valuable        -   a. Brand Image: Embossing and thicker card is more valuable            than a flat thin card.        -   b. Perception starting to change as thin gage cards become            more common and customers realize the user advantages of the            thinner card.    -   2. Some older swipe readers may not read a thin card unless the        magnetic stripe read head is spring mounted to accommodate        variations in card thickness.        -   a. Most modern swipe terminal readers have spring mounted            magnetic read heads that can read 5-30 mil cards    -   3. Not all personalization features are available on thinner        cards. Embossing and indented CVV2 on back of card is not        practical on a thin gage card because these features physically        require a thicker card.    -   4. RFID/Memory Chip Cards require a multiple layer laminated        card (to insert the RFID chip and antenna, or the memory chip)

III. Background: Manufacturing Process—Standard Credit Card (30 mil)

-   -   1. PVC overlay with magnetic stripe        -   a. Magnetic stripe is hot stamped in one PVC overlay (back            side)        -   b. Separate operation on a tape-layer machine in roll to            sheet or sheet to sheet configuration        -   c. Magnetic liquid slurry is placed on a Mylar carrier (and            dried in a manner similar to ink) that creates a magnetic            tape that is put into a roll and slit to the width of the            magnetic stripe. The roll of magnetic tape is applied with            heat (leaving the magnetic slurry stripe) and the Mylar            carrier is removed. In the proposed process, magnetics are            directly applied to the thin gage, one-layer plastic card;            no Mylar carrier is required, thus eliminating one cost and            manufacturing element.    -   2. PVC Core Printing: The PVC is printed on both the front and        backside using a variety of sheet fed presses (frequently        including litho press and silk screen process).    -   3. Collation: The three sheets (front side PVC overlay, PVC core        element, and back side PVC overlay with magnetic stripe) are        collated together and ultrasonically welded at several points on        the sheets to maintain registration.    -   4. Laminator: The three collated sheets are placed between metal        lamination plates (called a “book”), and several books are        placed in a laminator. Heat and pressure are applied to do a        controlled melt of products bonding the core and top and bottom        overlays into a single piece. After the sheets have cooled, they        are removed from the laminator plates and stacked for die        cutting.    -   5. Die Cutting the Individual Cards: Laminated sheets (30 mil)        are placed in a die cutter or card punch to produce individual        cards.    -   6. Apply hologram and signature panel to individual cards. The        hologram is either applied to the front or back of each card by        hot stamp, and the signature panel is applied to the back of the        card by hot stamp. This application may be done in one combined        operation, or two separate operations. The non-personalized card        body is complete.

IV. Card Personalization

Card personalization may include the following elements:

-   -   1. Card Number (embossed, or printed by thermal transfer or ink        jet)    -   2. Validity Date/Expiration Date (embossed or printed by thermal        transfer or ink jet)    -   3. Individual's Name (embossed or printed by thermal transfer or        ink jet).    -   4. CVV2 on back side (indent printed or printed by thermal        transfer or ink jet). (CVV2 Definition is the trade term for        “Card Verification Value 2” which is a secondary security        related to the card number. For the traditional 30-mil card, the        CVV2 must be imprinted on the back of the card, and must be        indent printed. Indent printing is the process of pressing        printed characters downward into the surface of the card.) On        the thin gage card, the CVV2 can be thermal printed or ink jet        printed on the surface of the card, but the printing is not        indented.    -   5. Other printing: PIN number with scratch off label; package        reference number, etc.    -   6. Magnetic encoding

Personalization elements are identical on both the standard 30-mil cardas the thin gage card. However, on the thin gage card, there is noembossing or indented CVV2. The thin gage card is serialized usingthermal transfer printing or ink jet printing.

SUMMARY OF THE PRESENT INVENTION

The present invention is the result of the discovery of an improved carddesign and manufacturing method to produce thin gage, open loop systemcards, such as credit cards, debit cards, prepaid cards, financialcards, and payroll cards. The thin gage card structure may vary between5-15 mils in thickness (0.005″ inches to 0.015″ inches) on a one plyplastic material such as PVC, polycarbonate, styrene, polyester, PLA, orcomparable natural or synthetic material. The majority of manufacturingsteps can be performed on a rotary press in a single operation.Personalization will be accomplished in one step on a high-speed machineusing ink jet for all information on both the front and back plusmagnetic encoding.

BRIEF DESCRIPTION OF THE DRAWINGS

For a further understanding of the nature, objects, and advantages ofthe present invention, reference should be had to the following detaileddescription, read in conjunction with the following drawings, whereinlike reference numerals denote like elements and wherein:

FIGS. 1A and 1B illustrate cross-section views of a prior art singlecore and a double core card respectively;

FIG. 2 illustrates an exploded cross-section view of a prior art singlecore card;

FIG. 3 illustrates a cross-section view of a thin gage open loop card ofthe present invention;

FIG. 4 illustrates a front view of the card illustrated in FIG. 3;

FIG. 5 illustrates a back side view of the card illustrated in FIG. 3;

FIGS. 6A and 6B illustrate views of two multi-part snap apart cards ofthe present invention; and

FIG. 6C illustrates a cross section view of the cards illustrated inFIGS. 6A and 6B, showing the snap apart feature of the cards.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

Before a discussion of the present invention, as illustrated in FIGS. 3through 6C, reference is made to FIGS. 1A through 2, which illustratethe prior art cards as discussed above under the Background of theInvention.

In FIG. 1A there is a cross-section view of a standard credit cardstructure 10 having a PVC core element 12, a PVC overlay 13, withprinted graphics 14, on both the front side 15 of the card 10, and theback side 16 of card 10. Back side 16 also includes a magnetic stripe28. FIG. 1B illustrates the card structure 10, having two core elementsassembled into a single card, called a split core card, where there areprovided the two PVC core elements 17 and 18 between the upper and lowerPVC overlays 13, which defines a split core card 10 having a thicknessof 30 mils. The card would have the same features as the single corecard 10 in FIG. 1A, and both cards would be fabricated in the manner asdiscussed under the General Background as discussed earlier.

The prior art card 10 is also illustrated in FIG. 2, where there isprovided the upper and lower PVC overlays 13, with a single core element12 therebetween, and including a hologram 22 on the front face 15 of thecard, (or a hologram 22 on the back side of the card 16); and asignature panel 24 and magnetic strip 28 on the backside 16 of the card.Again the cards in FIGS. 1A, 1B, and 2 are standard multilayered cardsas discussed.

Turning now to the present invention as seen in FIGS. 3 through 6C, theimproved card structure 30 defines the open loop card structure of thepresent invention. As seen first in side view in FIG. 3, card 30 has afront side 32 upon which a hologram 34 is provided, and includes printedgraphics 36. The back side 38 of card 30 may include one or more of thefollowing: a signature panel 40, a magnetic stripe 42 and a hologram 34.Card 30 utilizes a thin gage 5-15 mil (7 mil and 10 mil most common) ofone ply material 43 which eliminates embossing and indented CVV2 anduses high speed ink jet for personalization. The process for fabricatingthe card 30 encompasses a more efficient manufacturing process. Themagnetic stripe 42 is applied to thin gage material by the preferredmethod of first, applying a magnetic slurry stripe in multiple streamsdirectly to the plastic. This manufacturing process is faster thanapplying hot stamped magnetics. Slurry magnetic materials are lessexpensive because the magnetic stripe coating is applied directly to theplastic rather than to a throw away Mylar carrier that is discardedafter the transfer of the magnetic stripe coating to the plastic throughthe hot stamp magnetic tape application process.

An alternative would be to apply the hot stamped magnetic tape ratherthan applying magnetic slurry directly to the plastic. Anotheralternative would be to directly apply magnetic slurry or hot stampedmagnetic tape during the rotary press operation.

In the rotary press operation one would print front sides 32 and backsides 38 of cards 30; next apply a hologram 34. As an alternative, onecould apply a hologram 34 to single cards 30 after die cutting.

Next the signature panel 40 would be printed on the back 38 of card 30using specialty inks. An alternative would be to apply the signaturepanel 40 using a heat transfer signature panel tape on press; or applythe signature panel 40 to single card 30 after die cutting in a separateoperation in a one-step heat transfer operation with the hologram 34.

Next the cards 30 would be scored at line 45 for providing multi-partsnap apart cards 30A and 30B. They would be die-cut into single cards30. To effect the card personalization step would require only one passhigh-speed operation using ink jet on both sides 32 and 38 for allvariable information, and magnetic encoding. This process is moreefficient since personalization equipment for traditional 30 mil cardswith embossing or thermal transfer printing, operates at productionrates of 400-2,500 cards per hour, while card personalization equipmentusing inkjet, can operate at production rates of over 10,000 cards perhour.

FIG. 6A illustrates multi-part cards 30, having a score line 45 alongtheir common edge, so that one card 30A would be the card to utilize,while the second card 30B may include advertising materials,instructions, and other information. FIG. 6B illustrates an additionalembodiment of the multipart cards 30 as seen in FIG. 6A where the twocards 30A and 30B would snap apart along score line 45, and would definethe card 30A used to carry out the transaction, and the card 30B forother information and instructions or advertising. FIG. 6C illustrates aside view of the multipart cards 30 shown in FIGS. 6A and 6B, andclearly shows the score line 45 which would allow the two cards 30A and30B to be snapped apart when ready for use.

PARTS LIST Description Number Standard card structure 10 PVC coreelement 12 PVC overlay 13 Printed graphics 14 Front side of card 15 Backside of card 16 PVC core element 17 PVC core element 18 Hologram 22Signature panel 24 Magnetic stripe 28 Open loop card structure 30 Cards30A, 30B Front side of card 32 Hologram 34 Printed graphics 36 Back sideof card 38 Signature panel 40 Magnetic stripe 42 Single ply material 43Score line 45

All measurements disclosed herein are at standard temperature andpressure, at sea level on Earth, unless indicated otherwise.

The foregoing embodiments are presented by way of example only; thescope of the present invention is to be limited only by the followingclaims.

1. A thin gage open loop system card, comprising: a) a generallyrectangular card body, further comprising a thin gage one ply plasticmaterial between 5 and 15 mil thickness; b) a front side and back sideof the card having at least graphics printed thereupon; and c) a onepass high-speed ink jet application on the front and back sides toprovide variable information and magnetic encoding for personalizing thecard.
 2. The card in claim 1, wherein the thickness of the card wouldpreferably be in the range of 7 to 10 mil thickness.
 3. The card inclaim 1, wherein there would further be provided a hologram on the frontor back side of the card.
 4. The card in claim 1, wherein a magneticstripe is applied to the back side of the plastic thin gage material bythe preferred method of first, applying a magnetic slurry stripedirectly to the plastic.
 5. The card in claim 1, wherein a magneticstripe is applied to the back side of the plastic thin gage material byapplying a hot stamped magnetic tape.
 6. The card in claim 1, wherein ahologram would be applied in a rotary press operation by printing frontand back sides of cards and then applying the hologram or applying thehologram to single cards after die cutting.
 7. The card in claim 1,wherein a signature panel comprised of an ink receptive coating, label,or hot stamp transfer coating is applied to the back of the card.
 8. Thecard in claim 1, wherein an integrated circuit is applied to the card,wherein the integrated circuit may function either by direct contactwith a terminal or by radio frequency communications with a hostterminal. 9-12. (canceled)
 13. A thin gage open loop system card,comprising: a) a thin gage one ply plastic type material, not to exceed15 mil thickness, having front and back sides; b) a magnetic stripe,when a magnetic stripe is required, applied to the back side of the thingage one ply plastic type material; c) a hologram applied to at leastthe front side of the card utilizing a rotary press operation; d) asignature panel, when a signature panel is required, printed onto theback side of the card using specialty inks; and e) high-speed ink jetapplied to the front and back sides to provide variable information andmagnetic encoding, wherein the high-speed ink jet application allows forpersonalizing the card in only one pass.
 14. The card in claim 13,wherein there are multi-part snap apart cards, scored along a commonedge, to be disengaged from one another so that one card may be used tocarry out a transaction and a second card may be used for informationaland advertising purposes.
 15. A thin gage open loop system multi-partsnap apart cards, comprising: a) a first card with a thin gage one plyplastic material, not to exceed 15 mil thickness, having front and backsides; b) a magnetic stripe applied directly to the back side of thefirst card of thin gage material; c) a hologram applied to the front andback sides of the first card with a rotary press operation; d) asignature panel, when a signature panel is required, printed onto theback side of the first card using specialty inks or hot stamp transfer;e) a one pass high-speed ink jet application on the front and back sidesto provide variable information and magnetic encoding for personalizingthe first card; and f) a common edge of the first card scored along asecond card, so that the cards can be disengaged from one another andthe first card used to carry out a transaction and the second card usedfor informational and advertising purposes.
 16. A thin gage open loopsystem card, of the type comprising a rectangular card body, furthercomprising a thin gage one ply plastic material between 5 and 15 milthickness; a front side of the card having at least graphics printedthereupon; and a back side of the card, which may include a signaturepanel and either a magnetic stripe or integrated circuit for reading thecards contents, comprising: a) the thin gage one ply plastic material,not to exceed 15 mil thickness, having front and back sides; b) amagnetic stripe applied to a back side of the thin gage material byapplying a magnetic stripe directly to the thin gage one ply plasticmaterial; c) a hologram applied to the front side and the back side ofcards using a rotary press operation; d) the signature panel, asrequired, printed onto the back side of the card using specialty inks orhot stamp transfer; e) the card personalized by using high-speed ink jetapplication on the front and back sides to provide variable informationand magnetic encoding, wherein the high-speed ink jet application allowsfor personalization in only one pass.
 17. The card in claim 3 whereinthe hologram is applied after die cutting.
 18. The card in claim 6wherein the hologram is applied to front and back sides of cards afterdie cutting.
 19. The card in claim 15 wherein the hologram is appliedafter die cutting.
 20. The card in claim 16 wherein the hologram isapplied after die cutting.